OpenAI investor Vinod Khosla predicts AI will deflate the economy over the next 25 years

The billionaire Vinod Khosla, known for backing OpenAI, expressed his belief that AI will have a deflationary impact on the global economy, diverging from current inflationary pressures. He anticipates AI to render traditional measures of economic health less relevant, with abundant goods and services but scarce capital. Khosla’s venture-capital firm invested $50 million in OpenAI in 2019, the largest investment in the firm’s history. Despite concerns about the risks of AI, he downplayed the existential threat of sentient AI, emphasizing China as a higher risk. Elon Musk, also an advocate for AI, predicted a future of abundance and transformation of civilization with the potential of AI-powered robots.